Please answer the following questions in detail, provide examples whenever applicable, provide in-text citations. Explain how companies can hedge risks in their operating costs by using each of the following instruments. Hypothetical examples are required. Futures and forward contracts Option contracts Swap contracts Buying one asset and selling another. What is the hedge ratio and how is it determined? 2. The websites of the major commodities exchanges provide futures prices. Calculate the annualized net convenience yield for a commodity of your choice. Retrieve the current risk free rate from the U.S. Government treasury site. (Note: You may need to use the futures price of a contract that is about to mature as your estimate of the current spot price.) 3. You can find spot and futures prices for a variety of equity indexes on www.wsj.com. Pick one and check whether it is fairly priced. You will need to do some research work to find the dividend yield on the index and the interest rate. 4. Define each of the following theories accompanied by equations. Hypothetical examples are required. a. Interest rate parity. b. Expectations theory of forward rates. c. Purchasing power parity. d. International capital market equilibrium (relationship of real and nominal interest rates in different countries). ***************** 3 pages similarity must blow 20% provide in-text citations. follow APA7 format
Looking for a solution written from scratch with No plagiarism and No AI?
WHY CHOOSE US?
We deliver quality original papers |
Our experts write quality original papers using academic databases.We dont use AI in our work. We refund your money if AI is detected |
Free revisions |
We offer our clients multiple free revisions just to ensure you get what you want. |
Discounted prices |
All our prices are discounted which makes it affordable to you. Use code FIRST15 to get your discount |
100% originality |
We deliver papers that are written from scratch to deliver 100% originality. Our papers are free from plagiarism and NO similarity.We have ZERO TOLERANCE TO USE OF AI |
On-time delivery |
We will deliver your paper on time even on short notice or short deadline, overnight essay or even an urgent essay |